WEBVTT - Microsoft and OpenAI Agreement; UPS Soars; Paypal Surges

0:00:02.520 --> 0:00:07.360
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:16.760 --> 0:00:19.599
<v Speaker 3>Take a look and see what's happening in the marketplace.

0:00:19.640 --> 0:00:23.040
<v Speaker 2>Here we're going to go Tonita Sokova from Bloomberg newsdnitsa

0:00:23.040 --> 0:00:24.239
<v Speaker 2>what are you looking at here in the markets?

0:00:24.480 --> 0:00:26.880
<v Speaker 1>We have to start with Microsoft. Obviously the big story

0:00:26.880 --> 0:00:30.400
<v Speaker 1>of this morning. Microsoft and open Ai finalist this new agreement.

0:00:30.560 --> 0:00:32.520
<v Speaker 1>It's been in the works for a very long time.

0:00:32.560 --> 0:00:35.960
<v Speaker 1>The ticker, of course is MSFT. The SOCOs up as

0:00:36.040 --> 0:00:38.640
<v Speaker 1>much as four percent now it's about three percent, clearly

0:00:38.880 --> 0:00:42.120
<v Speaker 1>one of the big gainers in the SMP. This is

0:00:42.159 --> 0:00:47.040
<v Speaker 1>removing a layer of uncertainty for both companies. Then under

0:00:47.080 --> 0:00:50.879
<v Speaker 1>the new pack, Microsoft is getting twenty seven percent ownerships

0:00:50.920 --> 0:00:53.000
<v Speaker 1>take in open Ai and the price tag of that

0:00:53.280 --> 0:00:56.760
<v Speaker 1>is one hundred and thirty five billion. Of course, the

0:00:57.400 --> 0:01:01.320
<v Speaker 1>agreement clears society major obstacle for all Ai. The company

0:01:01.320 --> 0:01:03.080
<v Speaker 1>has spent so much time of this year working to

0:01:03.200 --> 0:01:07.840
<v Speaker 1>restructure and become this traditional for profit company, and that

0:01:07.880 --> 0:01:11.039
<v Speaker 1>has been an obstacle there. Microsoft will still have access

0:01:11.040 --> 0:01:15.520
<v Speaker 1>to artificial intelligence startup technology until twenty thirty two, including

0:01:15.600 --> 0:01:20.959
<v Speaker 1>models that achieve the benchmark of AI General Intelligent, Microsoft

0:01:21.080 --> 0:01:23.560
<v Speaker 1>will no longer have a right for first refusal on

0:01:23.600 --> 0:01:26.640
<v Speaker 1>open air compute. But the start up has made an

0:01:26.680 --> 0:01:31.440
<v Speaker 1>additional two hundred and fifty billion commitment to buy services.

0:01:32.120 --> 0:01:34.320
<v Speaker 3>So yeah, this is clearing a major obstacle.

0:01:34.440 --> 0:01:37.520
<v Speaker 1>The really strong reaction in the market, and still even

0:01:37.520 --> 0:01:41.720
<v Speaker 1>as indices are losing some of the gains there, the

0:01:41.760 --> 0:01:43.399
<v Speaker 1>reaction remains very positive.

0:01:43.760 --> 0:01:46.000
<v Speaker 3>And then it's a ups kind of two stories. They

0:01:46.000 --> 0:01:48.760
<v Speaker 3>had a strong profit but also big layoffs too.

0:01:48.960 --> 0:01:52.200
<v Speaker 1>Big layoffs, yes, but investors who have been reacting positively

0:01:52.240 --> 0:01:55.240
<v Speaker 1>to that, And obviously is the main number that has

0:01:55.320 --> 0:02:00.440
<v Speaker 1>really impressed the street is adjusted earnings that came at

0:02:00.480 --> 0:02:03.360
<v Speaker 1>one door seventy four cents, and the street was expecting

0:02:03.440 --> 0:02:07.680
<v Speaker 1>one door thirty two cents, So really big positive surprise there.

0:02:08.320 --> 0:02:12.200
<v Speaker 1>Of course, profit expectations are helping, but cutting costs and

0:02:12.240 --> 0:02:17.560
<v Speaker 1>eliminating thirty four thirty two thousand jobs has been a

0:02:17.600 --> 0:02:21.560
<v Speaker 1>major impact here. The tagories ups of course, and shares

0:02:21.600 --> 0:02:24.799
<v Speaker 1>are up about five percent. Actually, in urdered trading they

0:02:25.760 --> 0:02:28.079
<v Speaker 1>jumped as much as thirteen percent, so perhaps some of

0:02:28.120 --> 0:02:31.880
<v Speaker 1>that euphoria is fading. The cuts to its permanent operational

0:02:31.919 --> 0:02:36.280
<v Speaker 1>workforce includes drivers and package handlers, and some massive jump

0:02:36.280 --> 0:02:39.239
<v Speaker 1>from last year is a seventy percent increase from last year.

0:02:39.520 --> 0:02:41.160
<v Speaker 3>As part of the sweeping cost saving.

0:02:40.919 --> 0:02:44.360
<v Speaker 1>Initiative, UPS has closed a lot of operation ninety three

0:02:44.520 --> 0:02:47.520
<v Speaker 1>least and on buildings. The shares were under so much

0:02:47.520 --> 0:02:50.320
<v Speaker 1>pressure this year they were down twenty nine percent. Similar

0:02:50.360 --> 0:02:53.120
<v Speaker 1>story with FedEx, which was under a lot of trouble.

0:02:53.240 --> 0:02:55.239
<v Speaker 1>It actually in September it said that in this pate

0:02:55.639 --> 0:02:56.959
<v Speaker 1>a one billion headwind.

0:02:57.200 --> 0:02:59.639
<v Speaker 3>That'd say, we're seeing some relief for both companies.

0:02:59.680 --> 0:03:05.280
<v Speaker 1>Today, we're seeing some optimism for four quarter revenue higher

0:03:05.280 --> 0:03:09.040
<v Speaker 1>than the company previit is expected, but we're still with

0:03:09.280 --> 0:03:11.839
<v Speaker 1>the under pressure here today, so we're yet to see

0:03:11.840 --> 0:03:13.680
<v Speaker 1>if that earnings momentum can be maintained.

0:03:13.720 --> 0:03:14.040
<v Speaker 2>Really.

0:03:14.840 --> 0:03:19.720
<v Speaker 1>Finally, PayPal PayPal It's all open Ai story. PayPal share

0:03:19.800 --> 0:03:22.520
<v Speaker 1>search after announced a partnership with open Ai and of

0:03:22.520 --> 0:03:25.880
<v Speaker 1>course a pretty good earnings report. It boosted it's adjusted

0:03:25.919 --> 0:03:29.440
<v Speaker 1>earnings per share guidance for the full year. What we're

0:03:29.440 --> 0:03:32.320
<v Speaker 1>seeing is that PayPal raised its twenty twenty five just

0:03:32.400 --> 0:03:35.800
<v Speaker 1>earning per share forecast. It's about twenty cents higher than before.

0:03:35.920 --> 0:03:39.640
<v Speaker 1>The ticker, of course, is PYPL. The stock is about

0:03:39.720 --> 0:03:41.360
<v Speaker 1>eleven percent one of the beginners.

0:03:41.360 --> 0:03:41.680
<v Speaker 3>Today.

0:03:42.120 --> 0:03:46.720
<v Speaker 1>PayPal is instituting its first dividends It's fourteen cents per share,

0:03:46.800 --> 0:03:48.680
<v Speaker 1>so perhaps some of the optimism is coming from that

0:03:48.800 --> 0:03:51.560
<v Speaker 1>as well. The company announced the tie up with open Ai,

0:03:51.720 --> 0:03:57.160
<v Speaker 1>so they're gonna embed it's digitalality judge GPT. Obviously everyone

0:03:57.240 --> 0:04:00.200
<v Speaker 1>is using it for searches, and the idea is that

0:04:00.280 --> 0:04:03.400
<v Speaker 1>the company that users will be able to use PayPal

0:04:03.560 --> 0:04:06.000
<v Speaker 1>as a payment mental at the checkout and they will

0:04:06.040 --> 0:04:09.560
<v Speaker 1>also process venors as the instant checkout feature.

0:04:09.640 --> 0:04:13.560
<v Speaker 3>So perhaps really big partnership there. But yeah, big jump

0:04:13.640 --> 0:04:14.800
<v Speaker 3>on the news.

0:04:15.760 --> 0:04:19.800
<v Speaker 2>The stock Movers report from Bloomberg Radio. Check back with

0:04:19.880 --> 0:04:22.479
<v Speaker 2>us throughout the day for the latest roundup of companies

0:04:22.520 --> 0:04:25.640
<v Speaker 2>making news on Wall Street and for the latest market

0:04:25.640 --> 0:04:30.120
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:04:30.200 --> 0:04:33.719
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:04:33.800 --> 0:04:35.279
<v Speaker 2>the Bloomberg Business app.